U.S.

-Cuba Trade Brief

Project Leader
Sarita D. Jackson, Ph.D.
sarita@griit.org

Research Support
Yasmin Aljarki, LLM

September 2015
Series: U.S.-Cuba Trade Policy and Business
Publication Number: 1-1
2015 Global Research Institute of International Trade. All Rights Reserved.

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Table of Contents
Executive Summary

Introduction

Top Five U.S. Exports to Cuba

Competitive Advantage of Top U.S. Exports to Cuba

Challenges that U.S. Exports Face in the Cuban Market

Opportunities for U.S. Exporters in the Cuban Market

Existing Threats to U.S. Export Success in Cuba

Recommendations

10

References

11

Figures and Tables

Figure 1: Top Five U.S. Exports to Cuba (2014) (%)

Figure 2: U.S. Exports of Agricultural Products to Cuba (2004-2014) (US$)

Table 1: Top 10 Exporters of Food and Live Animals to Cuba (2014) (US$)

Executive Summary
With the restoration of diplomatic relations between the United States and Cuba in
2015, businesses are looking at both the opportunities and challenges in the Cuban
market. However, opportunities already exist due to specific legislation going as far
back as 2000.
Select U.S. products have been competitive in the Cuban market throughout the 21st
century. For example, wheat, corn and rice accounted for a large portion of U.S. food
exports to Cuba. Food exports to Cuba reached a peak in 2008 before dropping
drastically over the next seven years. Our analysis of trade statistics shows that the top
five competitive exports to Cuba are meat, animal feed, soybeans, corn and chemical
fertilizers.
At the same time, new opportunities have opened up for other products and services.
More specifically, agricultural equipment and services-based industries, such as
financial services, stand to gain from recent U.S.-Cuba policy reforms.
U.S. exporters to Cuba enjoy particular competitive advantages. Their competitive
strength lies in their geographical proximity to the Cuba, lower transportation costs,
reduced delivery time and small volume capacity.
Although U.S. exports can be cost competitive due to the reasons highlighted above,
other factors present a challenge to their ability to compete. For example, both U.S.
and Cuban policies increase the transaction costs for U.S. exporters, which, in turn,
increases the price of their products in the Cuban market.
This Cuba Trade Brief highlights the specific opportunities that allow U.S. exporters
access to the Cuban market. This brief goes further to assess the risks for SMEs in the
Cuban market and offers simple, realistic recommendations for business owners
looking to take advantage of the current and future opportunities in the Cuban market.